Service level agreement - stamp duty
Amit
(Querist) 03 September 2016
This query is : Resolved
Dear All,
A service level agreement is executed, for a consideration of Rs.20,000 p.m and period of agreement is for 5 years. Then in such a case what would be the Stamp Duty of such agreement.
Place of parties and execution is in Mumbai. So Bombay Stamp Act would apply as per my knowledge.
All the help would be valuable.
Would the consideration for the sake of agreement be 12 lakhs (20,000*12 months*5 years) ?
Edit1: Though agreement was done on a Rs500 stamp paper. is this sufficient? or stamp duty is compulsory?
Ms.Usha Kapoor
(Expert) 04 September 2016
Dear client,
You are quoting Bombay stamp Act.So you only calculate the stamp duty [payable on the consideration of service level agreement.
Amit
(Querist) 04 September 2016
Dear Ms. Usha,
Please understand that if I knew how to properly read the act, i wouldn't be asking a question here.
I'm not sure whether the consideration would be taken as 20,000 or the full 12 lakhs to calculate the stamp duty.
Also same query in this site suggest there is no need to pay any stamp duty on the agreement. ref: http://www.lawyersclubindia.com/forum/stamp-duty-on-service-level-agreement-26574.asp
cherukuri prasad
(Expert) 04 September 2016
Don't worry about the stamp duty. The defect can be cured at later stages also.
Rajendra K Goyal
(Expert) 05 September 2016
The document is agreement and need to be stamped accordingly.
Raj Kumar Makkad
(Expert) 16 September 2016
I do endorse the wise advice of the experts.
